The Securities and Exchange Commission (the "Commission") announced today that it filed a complaint in the United States District Court for the Eastern District of Pennsylvania charging two individuals and four entities with conducting a scheme to defraud primarily African American investors. Named as defendants are Marcus D. Dukes, Teresa Hodge and four companies that Dukes and Hodge control, namely Financial Warfare Club, Inc. (Maryland) ("FWC (MD)"), Financial Warfare, Inc. ("FW (DC)"), Financial Warfare Club, Inc. (Nevada) ("FWC (NV)") and Covenant EcoNet, Inc.

The Commission's Complaint alleges that, from at least September 2000 through September 2001, the defendants sought and found prospective investors through presentations at small churches and through meetings arranged through pastors of those churches. According to the Complaint, the defendants offered and sold unregistered securities to the prospective investors, inducing investments by misstating and omitting facts important to their investment decisions. The Complaint further alleges that the defendants ultimately defrauded at least 1000 investors residing in at least eighteen states of more than $1.3 million.

The Complaint charges all of the defendants with violations of Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 thereunder. The Complaint further charges Dukes, Hodge, FWC (MD), FWC (DC) and FWC (NV) with violations of the securities registration provisions of the Securities Act. The Complaint seeks permanent injunctive relief, an order requiring the defendants to pay disgorgement and civil penalties, and an order barring Dukes and Hodge from acting as an officer or director of any issuer of securities with obligations under Section 12 of the Exchange Act or Section 15(d) of the Exchange Act.

The Commission thanks the Securities Division of the Maryland Attorney General's Office and the District of Columbia's Department of Insurance and Securities Regulation for their assistance in this matter.

Investors or others with inquiries concerning this matter should call 215/597-0655.